Correlation Between American Airlines and ACHETER LOUER
Can any of the company-specific risk be diversified away by investing in both American Airlines and ACHETER LOUER at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining American Airlines and ACHETER LOUER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Airlines Group and ACHETER LOUER EO 145612, you can compare the effects of market volatilities on American Airlines and ACHETER LOUER and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in American Airlines with a short position of ACHETER LOUER. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Airlines and ACHETER LOUER.
Diversification Opportunities for American Airlines and ACHETER LOUER
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and ACHETER is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding American Airlines Group and ACHETER LOUER EO 145612 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACHETER LOUER EO and American Airlines is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on American Airlines Group are associated (or correlated) with ACHETER LOUER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACHETER LOUER EO has no effect on the direction of American Airlines i.e., American Airlines and ACHETER LOUER go up and down completely randomly.
Pair Corralation between American Airlines and ACHETER LOUER
Assuming the 90 days horizon American Airlines Group is expected to generate 0.14 times more return on investment than ACHETER LOUER. However, American Airlines Group is 7.2 times less risky than ACHETER LOUER. It trades about 0.0 of its potential returns per unit of risk. ACHETER LOUER EO 145612 is currently generating about -0.21 per unit of risk. If you would invest 1,650 in American Airlines Group on November 1, 2024 and sell it today you would lose (17.00) from holding American Airlines Group or give up 1.03% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
American Airlines Group vs. ACHETER LOUER EO 145612
Performance |
Timeline |
American Airlines |
ACHETER LOUER EO |
American Airlines and ACHETER LOUER Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with American Airlines and ACHETER LOUER
The main advantage of trading using opposite American Airlines and ACHETER LOUER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Airlines position performs unexpectedly, ACHETER LOUER can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ACHETER LOUER will offset losses from the drop in ACHETER LOUER's long position.American Airlines vs. EBRO FOODS | American Airlines vs. GWILLI FOOD | American Airlines vs. United Natural Foods | American Airlines vs. MAGNUM MINING EXP |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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